Question

CHUJ. CILIpur 15 TUU ULJ 4. Vocabulary - Terminology for components of taxable income Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Adjustments Adjusted gross income Deductions Standard deduction Itemized deduction Description A. Reduce AGI by the standard deduction and allowable exemptions. B. These are charitable contributions. C. This term refers to the result after deducting expenses like alimony paid and self employment taxes, to name a few. D. Many of these are based on a percentage of AGI. E. Deductions such as employee, personal retirement, higher education, and support expenses are included in this category. F. This is a blanket deduction that includes various deductible expenses normally incurred by taxpayers G. This is a claim made by the taxpayer for each person supported by the taxpayer's income. H. This is taxed as ordinary income if held less than 12 months. I. This term refers to allowable expenses that are deducted from AGI. . This term includes all income less certain allowable adjustments. Exemption Itemized deduction example Capital gains tax categories Steps to AGI Steps to taxable income

Answer 1

Terms	Answer	Description
Adjustment	E	Deductions such as employee, Personal retirement, higher education, and support expenses are included in this category
Adjusted Gross Income	C	This term refers to the result after deducting expenses like alimony paid and self -employment taxes , to name a few
Deductions	I	This term refers to allowable expenses that are deducted from AGI
Standard Deduction	F	This is a blanket deduction that includes various deductible expenses normally incurred by taxpayers
Itemized Deduction	D	Many of these are based on a percentage of AGI
Exemption	G	This is a claim made by the taxpayer for each person supported by the taxpayers income
Itemized deduction example	B	These are charitable contributions
Capital gains tax categories	H	This is taxed as ordinary income if held less than 12months
Steps to AGI	J	This term includes all income less certain allowable adjustments.
Steps to taxable income	A	Reduce AGI by the standard deduction and allowable exemptions.